ECON1001: Equilibrium Price (1 Viewer)

[SGSII]

Hi Guys!
How would you calculate the equilibrium price, given this question: http://imgur.com/Hvqbnt9
Thanks

 

[Carrotsticks]

Hi Guys!
How would you calculate the equilibrium price, given this question: http://imgur.com/Hvqbnt9
Thanks

You need to find the point of intersection.

The blue line has the equation P = -2Q + 220 (I got this by calculating the gradient and then observing that the Y intercept is 220, then used the general equation y=mx+b from Year 10) and the purple line has equation P = Q + 40.

To find the intersection, solve simultaneously.

Q + 40 = -2Q + 220

3Q = 180

Q = 60

When Q=60, we have P = 60 + 40 = 100.

So the equilibrium price is $100.

 

[SGSII]

You need to find the point of intersection.

The blue line has the equation P = -2Q + 220 (I got this by calculating the gradient and then observing that the Y intercept is 220, then used the general equation y=mx+b from Year 10) and the purple line has equation P = Q + 40.

To find the intersection, solve simultaneously.

Q + 40 = -2Q + 220

3Q = 180

Q = 60

When Q=60, we have P = 60 + 40 = 100.

So the equilibrium price is $100.

Thank you!

 

[Squar3root]

You need to find the point of intersection.

The blue line has the equation P = -2Q + 220 (I got this by calculating the gradient and then observing that the Y intercept is 220, then used the general equation y=mx+b from Year 10) and the purple line has equation P = Q + 40.

To find the intersection, solve simultaneously.

Q + 40 = -2Q + 220

3Q = 180

Q = 60

When Q=60, we have P = 60 + 40 = 100.

So the equilibrium price is $100.

where did this come from?

 

[Carrotsticks]

where did this come from?

I rearranged to the original equation.

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